The Scramble for Know-How

Talentism is the new capitalism. This has been proclaimed by captains of industry, management consultants and HR executives alike for more than a decade.

Klaus Schwab, founder of the World Economic Forum, declared in 2012: “Capital is being superseded by creativity and the ability to innovate – and therefore by human talents – as the most important factors of production. Just as capital replaced manual trades during the process of industrialisation, capital is now giving way to human talent."

And in different corners of the world, people were clearly paying attention:

• Singapore launched its Tech Pass in 2020 to signal its aspirations to become Asia's Silicon Valley by granting "the movers and shakers of the tech world" unprecedented flexibility doing business on the island.
• The UAE introduced Golden Visas in 2019, targeting entrepreneurial expertise and angel investment by entitling holders to renewable residency periods of 5-10 years as well as full business ownership.
• Estonia became the first country to issue Digital Nomad visas in 2020 and these - in tandem with Startup visas launched three years earlier - have been instrumental in transforming the tiny Baltic state into a startup haven and digital powerhouse. Last year tech companies generated a greater equivalent share of Estonia's GDP (1.17%) than in any other country, leaving Singapore in second place (1.14%).

These are just three examples. From Bermuda to Bali, Namibia to North Macedonia, and El Salvador to Sri Lanka, governments have increasingly come to realise that measuring success in the multipolar 21st century is no longer confined to concepts such as cumulative capital or geopolitical influence. Establishing competitive advantage in the present-day entails bringing to the marketplace groundbreaking uses for new technology and AI, and even more importantly it demands investment in an asset prized above all others: genuine human talent.

Since demand for this commodity vastly outstrips supply, its pursuit by the world's more provident governments and farsighted corporations has become increasingly business-minded and strategic in nature. Having strengthened their hand by facilitating enticements like long-term visas, favourable tax rates and 100% business ownership, these hard-nosed players proceed to up the ante and play their trump card: highly desirable living conditions that usually involve a combination of factors such as climate, culture, comfort, cuisine and cost of living.

This is not simply a matter of attracting people from overseas who will share their vision, knowledge and experience. With this comes the tangible prospect of economic uplift, not least because of the stabilising and revitalising effects of an expanded range of taxable activity.

As a country that continues to operate from a very narrow tax base, Thailand simply cannot afford to lose out in the scramble for know-how. With only 15.4% of our 72 million citizens constituting actual net taxpayers (see CHART), our capacity to generate revenue falls worryingly short of regional rivals such as Vietnam (24%), Malaysia (27.5%) and Singapore (43.3%), not to mention developed economies like France (79.5%), Australia (89.9%) and Norway (93.1%). An influx of global talent could represent an increase in revenue of hundreds of billions of baht per year which could (and should) be invested in life-changing infrastructure projects while simultaneously reducing the tax burden on low- and middle-income members of society.
 

It is perfectly feasible to envisage Thailand attracting 50,000 overseas experts within five years, and if each were taxed an average of THB 300,000 per annum, this would bring in an additional 15 billion every year. Then imagine if we could attract as many  as 5 million experts to our shores.

However, bringing these flights of fancy to life will necessitate the crafting of conditions that compete with those offered in places like Estonia and Singapore. Doing so will inevitably raise a host of issues, so here is a pre-emptive hotlist of five of the most pressing matters to resolve:

1. Visas for Tech Leaders and Digital Nomads: These will need to be legally robust and provide holders with the security of long-term residency. They should be made available through a clear and transparent application process that prioritises experts in data technology and digital innovation
2. Smarter Tax Rates: All the while ensuring that the tax burden on Thai citizens is not increased, a flat tax rate (e.g. 15%) should be applied to foreigners in place of the complex progressive system currently in place. This would allow for prospective relocations to be informed by more reliable financial projections, and in cases where Thailand indeed offers competitive conditions, the ability to make clearer comparisons between tax rates and costs of living in home countries and competing destinations will produce faster and more assured commitments from those in the global talent pool.
3. One-Stop Services: Risk, rubric, rigmarole and (ostensibly) random levying of fees are frequently cited as insurmountable barriers to doing business in Thailand, making it hardly surprising when entrepreneurs are lured to more accommodating locales. The creation of agencies that provide streamlined, end-to-end support for registering startups, obtaining licenses and arranging visas and work permits would help shed light on our more labyrinthine processes and thus remove many of the perceived barriers and unknown elements that have proven so off-putting in the past.  
4. Standardised Access to Healthcare: Already known across the world for the quality of its healthcare providers and cosmetic procedures, Thailand's attractiveness would be further enhanced by entitling its foreign workers to medical care equivalent to that afforded to Thai nationals.
5. Soft Landing and Community Integration Programmes: The economic impact of contributions from foreign talent would be amplified by initially providing support in areas such as language and culture, as well as opportunities to forge connections and extend networks within local business communities.

At this point it is important not to lose sight of the need to marry our outward gaze with a strong inner focus, specifically on Thailand's own human capital. 

This is what prompted Charoen Pokphand (CP) Group to establish its Strategic Project and Leadership Development (SPLD) programme. Conceived by CEO Suphachai Chearavanont with the express purpose of identifying local talent and providing it with a platform to foster creativity and innovation, it enables those earmarked as future leaders to progress and establish themselves within the exclusive ranks of the global talent pool.

This opportunity is made available throughout every business line and department in the CP Group, regardless of position or paygrade. Participants - referred to as young leaders - undergo action-based training in which real-world assignments are used to develop strategic acumen. With expert guidance from the many senior CP executives and external consultants who serve as mentors, young leaders refine their decision-making, problem-solving and critical-thinking capabilities by tackling challenges that are currently facing CP divisions.

A project-based approach adheres to the principles of cross-functional collaboration, ensuring that the young leaders are required to leave their comfort zones and apply their learnings across numerous fields, which fosters a working culture free of the rigid approaches of a silo mentality. Moreover, being involved in a business process or project from start to finish offers participants a birds-eye perspective that is normally restricted to senior executives only. By better connecting individual contributions to broader organisational objectives, the programme nurtures a closer alignment between decision-making and strategy.

To reiterate, it is imperative that all efforts to draw talent from overseas are matched by active involvement in nurturing homegrown talent, especially in young people. A successful implementation of this two-pronged approach will see Thailand become a crucible for dynamic interchanges of knowledge and innovation.

Such an approach will add further lustre to the attributes that already make Thailand so appealing: its vibrant and diverse cultural heritage, the beauty and rich biodiversity of its countryside and national parks, an enviable quality of life with a relatively low cost of living, excellent medical and wellness facilities, and a geographical location that makes it a natural hub for ASEAN and the wider Asian continent.

If we manage to put serious and competitive policies in place which are supported by world-class systems and infrastructure, Thailand genuinely has the potential to establish itself as the preferred second home of the global talent pool as well as an even more salubrious homeland for its people.